Federal Election Results Released: What It Means for Investors

The 2022 federal election results are in, with Scott Morrison conceding the vote on Saturday night and the Anthony Albanese-led Labor party declaring victory shortly after.

Mr Albanese will be Australia’s next prime minister, although it is not yet certain whether he will govern a minority or majority government.

In his victory speech, the 31st Prime Minister of Australia said he wanted to “bring Australians together”.

Addressing the economy, he said that “together we can work in the common interest with business and unions to boost productivity, raise wages and profits”.

“I want an economy that works for people, not the other way around,” he said.

With housing affordability for renters and buyers one of the burning issues of the election, Mr. Albanese has made a number of promises throughout the election campaign that will impact the housing market once put into practice.

While a large crossbench could play a role in determining the extent to which the government is able to employ its campaign initiatives, here are the policies a Labor government has promised to adopt:

Help with purchase

Anthony Albanese has promised a Labor government will reduce the cost of a mortgage by up to $380,000 for some eligible Australians as part of his Help with purchase scheme.

The scheme involves the Labor government offering eligible buyers a capital contribution of up to 40% of the purchase price of a new home and up to 30% of the purchase price of an existing home.

Buyers will be able to purchase a property they intend to live in with as little as 2% down payment. Participating lenders finance the rest of the purchase.

During the term of the loan, the purchaser has the possibility of acquiring an additional participation in the property if he has the means to do so. Before that point, they won’t have to pay rent for the government portion of the house. The government would recover its equity and its share of the capital gain when the house is sold.

National Housing Supply and Affordability Council

Following calls from housing advocates across the country, Mr. Albanese pledged to create a National Housing Supply and Affordability Council to address the two interrelated issues.

The Council would be composed of experts from the sectors of finance, economics, urban development, residential construction, urban planning and social housing.

The Council will work closely with states and territories to set land supply targets, in consultation with states and territories, and will play a key role in developing the National Housing and homelessness.

First Home Regional Guarantee

As part of an expansion of the First Home Guaranteethe Labor Party has pledged to help 10,000 regional Australian families buy their first home each year.

The scheme aims to triple the number of places Australians living in regional areas received last year under the current FHG scheme.

Places will be reserved for Australians who have lived in the region in which they are applying for more than 12 months. It will see approved applicants buy a home with as little as a 5% down payment, without having to pay Lenders Mortgage Insurance (LMI).

Price Cap Reviews

Continuing with Labour’s planned expansion of the first housing guarantee, the party has also pledged to carry out bi-annual reviews of the scheme’s price caps in capitals and regions which determine the maximum price a eligible applicant can pay for their new accommodation. .

Negative gear

Labor backed away from their earlier proposed changes to negative gear in July 2021, pledging to “maintain existing negative debt and capital gains tax regimes” during the ruling party’s term after the 2022 election.

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Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

About the Author

Grace Ormsby

Grace is a reporter for real estate and investment brands Momentum. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communications (Journalism) from Newcastle University. She is passionate about providing easy-to-digest information and relevant content for her key audiences and… Read more

Federal Election Results Released: What It Means for Investors




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Last update: May 22, 2022

Posted: May 21, 2022